backed Pearl Petroleum mandates USD 400-500mln bond

By Zawya

By Staff Writer

The UAE-backed Pearl Petroleum Company has issued a mandate for a new five-year senior secured bond, with the five-company consortium looking raise between $400-500 million through the offering.

The bonds will rank equally with the company's existing secured debt, including debt under the DFC, BoS and CBI facilities.

A series of fixed income investor meetings have commenced today, with DNB Carnegie and Pareto Securities mandated as joint lead managers.

The net proceeds from the contemplated bond issue will be used to refinance the company’s existing PPCL01 PRO $350 million senior secured bonds, fund a Debt Service Reserve Account, finance capex relating to the development of the Khor Mor and Chemchemal gas fields in the Kurdistan Region of Iraq (KRI), and general corporate purposes.

Subject to completion of the contemplated bond issue, Pearl will call the PPCL01 in full at the prevailing call price.

A listing is expected on Euronext ABM within six months after the issue date.

Pearl Petroleum was founded in 2009 as a consortium with the Sharjah-based firms Dana Gas and Crescent Petroleum as joint operators with 35% equity share each, and with OMV, MOL, and RWE joining the consortium subsequently with a 10% share each. The company is the leading gas producer in KRI.

(Writing by Bindu Rai, editing by Seban Scaria)

bindu.rai@lseg.com

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